Provenance Gold Corp. (CSE:PAU) ticks all the boxes for writer Bob Moriarty
Bob Moriarty | August 3, 2021 | SmallCapPower: We have been in a correction in the resource space. As I pointed out in one of my finance books, stocks go up and stocks go down. That’s so simple to understand that most people don’t. If they own a great stock, they expect it to go up every day. Sorry Charlie, it doesn’t work that way. Last week was brutal but I have been pruning some of my 400% plus gainers and moving the proceeds into good companies that aren’t as well known.
(The following is an article originally published on 321gold.com on July 19, 2021)
Daily I become more and more convinced that if you want to profit in the junior space, you have to trade stocks. It really is as simple as buying cheap and selling dear.
I was buying NFG at $2, why wouldn’t I be selling some when it broke $13? That’s a 550% profit. I invest to make a profit. As good as NFG is and it will be far higher in the years ahead, I had a great profit. Now the stock is down 33% from its high and nothing at all has changed.
So, I have been looking for cheap stocks to put money into. Recently I found one. Good story and management and a couple of solid projects in the US, relatively free of Resource Nationalism. So far.
Provenance Gold Corp. (CSE:PAU) ticks all the boxes for me. It’s in Nevada near Newmont’s Long Canyon mine. The White Rock property has had 65 drill holes, most going back to 1985-1989 that had 191 intercepts between 0.34 g/t gold to 5.7 g/t gold with intervals between 10 and 95 feet. The gold mineralization seems to be 3.2 km by 1.6 km. The previous drilling was widely spaced between 200 and 900 feet between holes. Provenance believes the project contains a large near surface oxide gold system suitable for heap leaching. Drilling has begun at White Rock in the past week. Management has planned and budgeted for a 5,000-meter drill program of 30-40 drill holes in total.
White Rock contains a total of 258 claims or 5,160 acres. The option calls for Provenance to pay the vendor a total of $250,000 over a four-year period for a 100% interest subject to a 2% NSR with a $25,000 advance royalty payment due yearly after the property has been paid for.
Provenance Gold has an excellent Plan B to follow up on when they have completed drilling at White Rock. They have a wholly-owned prior high-grade silver mine at their Mineral Hill silver project consisting of 9 patented claims, 160 acres of private homestead land and 20 unpatented claims. The company purchased the ground for 3 million shares of Provenance and cumulative payments of $195,000 and escalating work commitments over an eight-year period.
Mining at Mineral Hill began in 1868 at an initial reported grade of 140 ounces per ton. Processing and mining continued until 1939 with reports suggesting an average grade of 25 ounces of silver for the tonne.
Readers should remember that in the early days of mining silver in Nevada the ore was hand sorted and loaded on mule trains to be shipped to San Francisco for further shipping to Cornwall in England for processing. As such they only shipped the highest-grade rock.
Surface sampling by Provenance Gold shows grades between 50 and 1,215 grams per tonne silver. Large volumes of broken rock in various mine dumps around the property show grades between four to eight ounces of silver to the ton.
While I like the White Rock project it does not have the barn burning potential of assays that the Mineral Hill project does. Provenance Gold will begin drilling Mineral Hill for silver after the White Rock drilling is complete. I understand the labs are already backing up so Provenance may well move their drill rig to Mineral Hill while they await assays for White Rock. The advantage of Mineral Hill is that with the kind of grade they can expect there, an XRF machine can give them a lot of information about mineralization.
Mineral Hill has never had modern exploration. With the grades of silver that they have already found, the project has a target rich potential for both discovery and moving the needle for investors.
Provenance Gold is an advertiser. I have bought shares in the open market so naturally I am biased. Do your own due diligence.
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